Debtors were shown in balance sheet at Rs 80,000. Debtors were realised at a discount of 7%. The journal entry will be- A. Bank A/c Dr 5600 To Realisation A/c 5600 B. Realisation A/c Dr 5600 To Bank A/c 5600 C. Bank A/c Dr 74400 To Realisation A/c 74400 D. Realisation A/c Dr 74400 To Bank A/c 74400

Debtors were shown in balance sheet at Rs 80,000. Debtors were realised at a discount of 7%. The journal entry will be- A. Bank A/c Dr 5600 To Realisation A/c 5600 B. Realisation A/c Dr 5600 To Bank A/c 5600 C. Bank A/c Dr 74400 To Realisation A/c 74400 D. Realisation A/c Dr 74400 To Bank A/c 74400

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Debtors were shown in balance sheet at Rs 80,000.

Debtors were realised at a discount of 7%.

The journal entry will be-

A. Bank A/c Dr 5600

To Realisation A/c 5600

B. Realisation A/c Dr 5600

To Bank A/c 5600

C. Bank A/c Dr 74400

To Realisation A/c 74400

D. Realisation A/c Dr 74400

To Bank A/c 74400

Definition Definition Method of recording financial transactions in the book of original entry by debiting and crediting the accounts affected by a transaction using the golden rules of accrual accounting.

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